ISLAMABAD, Sept 17 (INP): The Economic Coordination Committee (ECC) on Monday approved an increase in gas tariff. Finance Minister Asad Umar, who was chairing the committee’s meeting also approved the addition of a new tariff slab for sale of gas. In view of Umar’s directives to not burden masses with the price hike, a larger increase in tariffs was placed on higher tariff slabs.

Furthermore, the import tax on Liquefied Petroleum Gas (LPG) was decreased to ten per cent. Importing the commodity is expected to decrease its price. Earlier on September 10, the Economic Coordination Committee (ECC) decided against an immediate increase in gas prices and left the final decision to Prime Minister Imran Khan.

Finance Minister Asad Umar chaired an ECC meeting in Islamabad and a hike in gas tariff was mulled over. [timed-content-server show="09/18/2018 01:00 Asia/Karachi"]“The ECC prepared guidelines for an increase in gas tariff,” sources added. “A final decision on the hike in gas prices will be taken by Prime Minister Imran Khan,” the sources further said. Further, the ECC decided to provide fertiliser factories with 50 per cent local gas and 50 per cent LNG. “The LNG bills will be divided equally between the fertiliser companies and the government,” sources added. Stating that all fertiliser companies will continue production on full capacity, sources said, “Fertilisers will be imported to meet the demand for urea.” The meeting will discuss issues pertaining to alteration in gas prices, controlling energy crisis and power circular debt. Earlier on September 03, the Economic Coordination Committee (ECC) announced to conduct a major crackdown against electricity theft. Significant decisions were taken in a meeting of the committee headed by Finance Minister Asad Umar. In addition to the crackdown against electricity theft, the ECC also agreed to sever all illegal electricity connections within three months. A decision to install prepaid electric meters was also taken. The committee also resolved to take immediate against power-sector defaulters including ministries and government departments. Furthermore, the ECC decided to immediately resume operations of fertiliser factories. It resolved that the domestic demand for fertiliser will be fulfilled from the presently-inoperative factories. On August 29, the Economic Coordination Committee of the Cabinet was informed that the amount of Circular debt is standing at Rs 596 billion with an increase of Rs. 30 billion in the last month. Ministry of Energy, Power Division gave a detailed presentation on the amount of piled up Circular Debt. According to the data compiled up to 31st July 2018 by the Ministry, it was brought to the notice of the ECC, that the amount of Circular debt is standing at Rs.596 billion with an increase of Rs. 30 billion in the last month (i.e. July), another Rs. 582 billion are parked with the Power Holding companies under the STFF arrangements. The total liability currently stands at Rs.1188 billion. ECC rejected a summary regarding the increase in Gas tariff. Chairman ECC expressed displeasure on the issue of Fertilizer pricing and its export, taken by the previous government which was totally against the interests of the farmer community. He said that the interest of the poor farmer should be the supreme motivation for taking such decisions. The ECC was informed that the total requirement of fertilizer for the country for this sowing season would be around 600,000 tons. The ECC directed that a committee will be formed under the chairmanship of Advisor Industry and Production Mr. Abdul Razak Dawood to hold discussions with the local fertilizer industry to ascertain the total domestic production. INP/AJ[/timed-content-server]